Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, helping investors capitalize on upward or downward price movements [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still present risks due to declining earnings forecasts [10] Company Spotlight: Voya Financial - Voya Financial, Inc. operates in the retirement, investment, and employee benefits sector in the U.S. and has a Zacks Rank of 3 (Hold) with a VGM Score of B [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 7.89, making it attractive for value investors [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.27 to $9.01 per share, alongside an average earnings surprise of +42.9% [12]

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $2,128 million, up from $1,956 million in the same period of 2024, representing a growth of 8.8%[20] - Net income for the three months ended September 30, 2025, was $272 million, compared to $98 million for the same period in 2024, reflecting a significant increase of 177.6%[21] - Basic earnings per share for the three months ended September 30, 2025, were $1.82, compared to $1.00 for the same period in 2024, an increase of 82%[21] - For the nine months ended September 30, 2025, Voya Financial achieved a net income of $514 million, contributing to a total comprehensive income of $1,231 million[28] - The company reported net investment income of $583 million for the three months ended September 30, 2025, compared to $506 million in the same period of 2024, a growth of 15.2%[21] - The total comprehensive income for the three months ended September 30, 2025, was $561 million, compared to $869 million for the same period in 2024[23] - The company reported a net income of $584 million for the nine months ended September 30, 2025, compared to $621 million for the same period in 2024, indicating a decrease of 6%[169] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $177,448 million, an increase from $163,889 million as of December 31, 2024, indicating a growth of 8.2%[18] - The total liabilities as of September 30, 2025, were $170,365 million, an increase from $157,882 million as of December 31, 2024, reflecting a growth of 7.9%[19] - As of September 30, 2025, Voya Financial reported total shareholders' equity of $6,862 million, with retained earnings showing a deficit of $1,778 million[29] - The balance of noncontrolling interest as of September 30, 2025, was $221 million[29] - The company reported reinsurance recoverable balances of $10.845 billion, net of allowance for credit losses[139] Investment Activities - The company reported net cash used in investing activities of $997 million, compared to net cash provided of $504 million in the same period of 2024[37] - The company acquired OneAmerica Financial's full-service retirement plan business for approximately $50 million in cash, with contingent consideration of up to $160 million payable in 2026[40] - The total investment income for the nine months ended September 30, 2025, was $1,727 million, up from $1,553 million in the same period of 2024[78] - The company reported a gross investment income of $605 million for the three months ended September 30, 2025, compared to $528 million in the same period of 2024[78] Shareholder Activities - The company issued common stock worth $5 million during the nine-month period, while repurchasing shares totaling $100 million[28] - Dividends on common stock amounted to $130 million for the nine months ended September 30, 2025[28] - The company declared dividends of $0.45 per share for the three months ended September 30, 2025, and $1.35 per share for the nine months ended September 30, 2025, compared to $1.25 for the same period in 2024[164] - The company repurchased a total of 1,345,732 shares of common stock during the nine months ended September 30, 2025, with a payment of $100 million for the initial shares and additional shares delivered[167] Comprehensive Income - The company’s accumulated other comprehensive income improved to $(1,778) million as of September 30, 2025, from $(2,462) million as of December 31, 2024[19] - Total comprehensive income for the three months ended September 30, 2025, was $561 million, compared to $869 million for the same period in 2024[23] - The accumulated other comprehensive income (loss) as of September 30, 2025, was $(1,778) million, slightly improved from $(1,812) million in the previous year[171] Segment Performance - The Retirement segment provides tax-deferred, employer-sponsored retirement plans and administrative services, contributing significantly to the company's overall performance[146] - The company will continue to operate through three segments: Retirement, Investment Management, and Employee Benefits, with a focus on enhancing performance metrics[145] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was 11.4%, significantly lower than the statutory rate of 21% due to dividends received deduction and tax credits[176] - The Company expects no material impact from the One Big Beautiful Bill Act signed into law in July 2025[182] Fair Value Measurements - As of September 30, 2025, total assets measured at fair value amount to $144.621 billion, with $109.084 billion classified as Level 1 assets[95] - The fair value of U.S. corporate public securities is $7.769 billion, with $7.706 billion classified as Level 2[95] - The Company utilizes third-party commercial pricing services for fair value measurements, ensuring compliance with ASC Topic 820[99] Litigation and Claims - The Company continues to deny allegations in the Ravarino case, which involves claims of breach of fiduciary duties related to the Voya 401(k) Savings Plan[202] - The Company believes that the outcome of pending litigation and regulatory matters is unlikely to have a material adverse effect on its financial position[199]

Core Points - Voya Financial announced Connie Michael as the grand prize winner of the 2025 Unsung Heroes award [1] Group 1 - The award recognizes outstanding contributions by educators [1] - Connie Michael is a teacher at Crow Agency Public School in Montana [1]

Financial Data and Key Metrics Changes - The company reported adjusted operating EPS of $2.45, reflecting a nearly 30% year-over-year increase, driven by earnings growth across all business segments [11] - Generated over $200 million in excess capital during the quarter, with year-to-date capital generation reaching approximately $600 million, positioning the company to exceed its $700 million full-year target [17][18] - Return on equity improved to 18%, with approximately $150 million of capital returned in the third quarter through share repurchases and dividends [17] Business Line Data and Key Metrics Changes - In the retirement segment, adjusted operating earnings reached $261 million, a 24% increase year-over-year, supported by strong organic defined contribution net inflows of approximately $30 billion year-to-date [11][12] - Investment management generated $62 million in adjusted operating earnings, a 13% year-over-year increase, with nearly $4 billion in net flows for the quarter, bringing year-to-date net flows to over $13 billion [13][14] - Employee benefits reported $47 million in adjusted operating earnings, primarily driven by favorable group life claims and prudent management of expenses [15] Market Data and Key Metrics Changes - The wealth management business experienced 20% year-over-year sales growth, with total client assets reaching approximately $35 billion [9] - The company serves nearly 20 million workplace customers, indicating a strong market presence and growth potential in the retirement and employee benefits sectors [10] Company Strategy and Development Direction - The company is focused on profitable growth across its diverse business lines, with strategic investments in wealth management and a disciplined approach to capital deployment [5][18] - Plans to continue investing in technology and advisor recruitment to enhance the wealth management segment, aiming for accelerated growth [9][32] - The company is committed to returning excess capital to shareholders while pursuing strategic M&A opportunities, particularly in retirement roll-ups [18][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on full-year targets and advancing long-term strategy, citing strong execution and financial strength [20] - The company anticipates a return to target margins in the retirement segment as strategic investments in wealth management are made [12][15] - Management highlighted the importance of leveraging claims experience to inform underwriting and reserve levels for the stop-loss business [28] Other Important Information - The company resumed share repurchases during the quarter, with plans to repurchase an additional $100 million in the fourth quarter [17] - The launch of an integrated claims system for leave management is set for January 1, 2026, enhancing the employee benefits offering [15][61] Q&A Session Summary Question: Size of wealth management investment for 2026 - The company expects to use up to $75 million of excess capital on wealth management investments, primarily in technology and advisor recruitment [24][26] Question: Expectations for stop-loss margins in 2026 - Management indicated that reserve levels are firming up for the 2024 cohorts, with claims experience being leveraged for underwriting in 2026 [28] Question: Corporate expenses in Q3 and Q4 - Higher corporate expenses are attributed to strong performance-related compensation accruals, with expectations to return to a normal run rate next year [36] Question: Edward Jones partnership success - The partnership with Edward Jones is on track, with distribution agreements executed and technology connections being finalized for integration [80][82] Question: Blue Owl partnership plans - The Blue Owl partnership aims to access private investments and innovative solutions for retirement outcomes, with a rollout planned by the end of the year [84]

Financial Performance - Adjusted Operating Earnings Per Share increased to $2.45 in 3Q'25 from $1.90 in 3Q'24[14] - Adjusted Operating Earnings After-Tax increased to $239 million in 3Q'25 from $190 million in 3Q'24[14] - Net Income Available to Common Shareholders increased to $176 million in 3Q'25 from $93 million in 3Q'24[14] - Excess Capital Generation was $0.2 billion in 3Q'25 and the company is on track to exceed the original guidance of $0.7 billion for the year[14] - Retirement's 3Q'25 adjusted operating earnings increased by 20%+ year-over-year[16] - Investment Management's 3Q'25 adjusted operating earnings increased by 13% year-over-year[19] - Employee Benefits' 3Q'25 adjusted operating earnings increased by 104% year-over-year[23] Business Segments - Retirement has Defined Contribution net inflows of $30 billion YTD'25[17] - Investment Management had net inflows of $3.9 billion in 3Q'25, contributing to YTD'25 net inflows of over $13 billion[21] - Investment Management YTD'25 organic growth of 4.4%[21] - Employee Benefits is focused on Stop Loss margin improvement[22] Capital Management - YTD'25 Capital Allocation includes 36% for Strategic Investments, 36% for Share Repurchases & Dividends, and 28% for Excess Capital[32]

Core Insights - Voya Financial reported quarterly earnings of $2.45 per share, exceeding the Zacks Consensus Estimate of $2.22 per share, and showing an increase from $2.12 per share a year ago, resulting in an earnings surprise of +10.36% [1] - The company achieved revenues of $370 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 13.47%, compared to $289 million in the same quarter last year [2] - Voya has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Company Performance - Voya's shares have increased by approximately 6.3% since the beginning of the year, while the S&P 500 has gained 16.5%, indicating underperformance relative to the broader market [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimates and Revisions - The current consensus EPS estimate for the upcoming quarter is $2.27, with expected revenues of $317.87 million, and for the current fiscal year, the estimate is $8.90 on $1.3 billion in revenues [7] - The trend of estimate revisions for Voya was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Insurance - Life Insurance industry, to which Voya belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Voya Financial reported Adjusted Operating Earnings Before Income Taxes for the quarter, which is a key measure for evaluating business performance [4]. - The company emphasized the importance of Adjusted Operating Revenues, which are calculated by adjusting Total Revenues for specific items [6]. - Adjusted Operating Return on Common Equity excluding AOCI is highlighted as a measure of returns for common shareholders, excluding variable components due to interest rate changes [11]. - The company noted that net revenue is derived from investment spread, fee-based margin, and net underwriting gain or loss, providing insights into revenue growth and margin expansion [11]. - Voya Financial's Adjusted Operating Margin is defined as Adjusted Operating Earnings Before Income Taxes divided by net revenue, indicating operational efficiency [11]. - The report includes a reconciliation of Adjusted Operating Earnings Before Income Taxes to the U.S. GAAP measure, Income (loss) before income taxes, for clarity [5]. - The company reported significant adjustments in operating benefits and expenses, reflecting changes in market risk benefits and other non-recurring items [8]. - Voya Financial's analysis of sources of earnings includes net investment income and fee-based margins, which are critical for understanding performance drivers [9]. - Future outlook includes continued focus on market expansion and potential strategic acquisitions to enhance growth [11]. Revenue and Income - Net income available to common shareholders for Q3 2025 was $176 million, up from $162 million in Q2 2025, and $139 million in Q1 2025 [12]. - Adjusted operating earnings before income taxes for Q3 2025 were $290 million, compared to $289 million in Q2 2025 and $232 million in Q1 2025 [14]. - Total revenues for Q3 2025 reached $2,128 million, an increase from $1,981 million in Q2 2025 and $1,969 million in Q1 2025 [13]. - Net investment income for Q3 2025 was $583 million, slightly down from $584 million in Q2 2025 but up from $560 million in Q1 2025 [13]. - Fee income for Q3 2025 increased to $616 million, compared to $577 million in Q2 2025 and $570 million in Q1 2025 [13]. - Premiums collected in Q3 2025 were $719 million, consistent with $718 million in Q2 2025 but down from $737 million in Q1 2025 [13]. - The effective tax rate for Q3 2025 was 17.8%, up from 16.9% in Q2 2025 [12]. - Total cash returned to common shareholders in Q3 2025 was $123 million, including $80 million in share repurchases and $43 million in dividends [12]. Assets and Liabilities - Total assets as of September 30, 2025, reached $177,448 million, up from $166,933 million as of September 30, 2024, indicating a growth of approximately 6% [17]. - Total liabilities as of September 30, 2025, were $170,365 million, an increase from $160,351 million as of September 30, 2024, representing a rise of about 6% [17]. - Total shareholders' equity as of September 30, 2025, was $6,862 million, up from $6,384 million as of September 30, 2024, reflecting an increase of about 7% [17]. - Total Financial Debt as of September 30, 2025, is $2,104 million, a decrease from $2,502 million as of December 31, 2024, representing a reduction of approximately 16% [19]. - The Debt-to-Capital ratio improved to 29.8% as of September 30, 2025, down from 38.5% as of December 31, 2024, indicating enhanced capital structure [19]. Client Assets and Management - Total Assets Under Management (AUM) and Assets Under Administration (AUA) reached $1,088,624 million as of September 30, 2025, with a significant contribution from Retirement AUM of $306,558 million [20]. - Client Assets reached $784,821 million as of September 30, 2025, an increase from $612,205 million as of December 31, 2024, representing a growth of approximately 28% [22]. - Total Client Assets (AUM) reached $366.3 billion as of September 30, 2025, up from $340.5 billion a year ago, representing a 7.6% increase [27]. - Institutional AUM increased to $173.4 billion, with net inflows of $3.56 billion in the third quarter of 2025, compared to net inflows of $1.77 billion in the same period last year [28]. - Retail AUM remained stable at $156.4 billion, with net flows of $317 million in Q3 2025, showing a slight increase from $2.06 billion in Q3 2024 [28]. Segment Performance - Adjusted operating earnings before income taxes for the Retirement segment reached $913 million for the twelve months ended September 30, 2025, up from $758 million a year ago, reflecting a 20.5% increase [39]. - The adjusted return on capital for the Retirement segment was 21.3% for the three months ended September 30, 2025, compared to 19.2% in the same quarter last year [39]. - The adjusted operating earnings for the Employee Benefits segment were $47 million for the three months ended September 30, 2025, significantly lower than $147 million in the same quarter last year [39]. - The adjusted return on capital for the Investment Management segment was 20.1% for the three months ended September 30, 2025, compared to 18.1% in the same quarter last year [39]. Investment Performance - Gross investment income for the three months ended September 30, 2025, was $527 million, with an annualized earned rate of 5.6% [41]. - Alternative investment income for the three months ended September 30, 2025, was $60 million, an increase from $26 million in the same period last year, representing a 130.8% year-over-year growth [43]. - The long-term expected return for alternative investments and investment capital is projected at 9% annually [43]. Adjusted Operating Metrics - The adjusted operating margin for the trailing twelve months (TTM) was 28.5%, up from 28.0% in the previous quarter [26]. - The adjusted operating return on common equity for the twelve months ended September 30, 2025, was 12.8%, up from 11.3% in the previous quarter [49]. - Total adjusted operating revenues for Q3 2025 reached $1,942 million, a 3% increase from $1,900 million in Q2 2025 [47]. - Total benefits and expenses for Q3 2025 were $1,821 million, compared to $1,793 million in Q2 2025, reflecting a 1.6% increase [47].

Core Points - Voya Financial, Inc. has announced a 4.4% increase in its common stock dividend to $0.47 per share for the fourth quarter of 2025, up from $0.45 per share [1] - The common stock dividend is payable on December 29, 2025, to shareholders of record as of November 26, 2025 [1] - Additionally, Voya's board declared a quarterly dividend of $13.3750 per share on its Series B preferred stock, equivalent to $0.334375 per depositary share, payable on December 15, 2025 [2] Company Overview - Voya Financial, Inc. is a leading retirement, employee benefits, and investment management company serving approximately 15.7 million individual, workplace, and institutional clients [3] - The company is recognized as a "Great Place to Work" by the Great Place to Work® Institute, emphasizing a culture of customer centricity, integrity, accountability, agility, and inclusivity [3]

Core Insights - Voya Financial is positioned to continue its earnings-beat streak, having surpassed earnings estimates by an average of 25.03% in the last two quarters [1][5] Earnings Performance - For the last reported quarter, Voya achieved earnings of $2.4 per share, exceeding the Zacks Consensus Estimate of $2.09 per share by 14.83% [2] - In the previous quarter, Voya's earnings were $2.15 per share against an expected $1.59 per share, resulting in a surprise of 35.22% [2] Earnings Estimates and Predictions - Estimates for Voya have been trending higher due to its history of earnings surprises, with a positive Zacks Earnings ESP of +0.76%, indicating bullish sentiment among analysts [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of another earnings beat, with historical data showing that nearly 70% of stocks with this combination exceed consensus estimates [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions which may provide more accurate predictions [7] - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9] Importance of Earnings ESP - Monitoring a company's Earnings ESP before quarterly releases is crucial for increasing the likelihood of successful investment decisions [10]

Core Insights - Voya Financial, Inc. (VOYA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-earnings multiple of 1.12X, lower than the industry average of 1.92X, the Finance sector's 4.17X, and the Zacks S&P 500 Composite's 8.58X [1] - The company has a market capitalization of $7.10 billion and has been trading above its 200-day simple moving average, indicating a short-term bullish trend [2] - Voya Financial's shares have gained 7% year-to-date, outperforming the industry's growth of 0.5% [3] Growth Projections - The Zacks Consensus Estimate for Voya Financial's 2025 earnings per share indicates a year-over-year increase of 42.7%, with revenues expected to reach $1.29 billion, implying a 20.2% year-over-year improvement [4] - For 2026, the consensus estimates for earnings per share and revenues indicate increases of 16% and 8.3%, respectively, from the 2025 estimates [4] Capital Generation and Strategic Partnerships - Voya expects excess capital generation to rise by $100 million in 2025, driven by strategic partnerships and strong underlying business performance [7][14] - The partnership with Allianz Global Investors has added scale, diversification, and growth potential to Voya's Investment Management segment [7][12] Segment Performance - Voya's earnings have grown 12.2% over the past five years, outperforming the industry average of 7.8%, with a long-term earnings growth rate expected at 15.3% [8] - The Wealth Solutions segment is experiencing significant growth due to improved business results, higher surplus income, and lower administrative expenses [11] - The Investment Management segment is benefiting from higher investment capital returns and improved fee revenues [12] - The Health Solutions segment is expected to grow across all product lines with favorable retention [13] Analyst Sentiment - Three out of five analysts covering Voya have raised their estimates for 2025, and four analysts have raised estimates for 2026 in the past 30 days, leading to a 0.8% and 1.2% increase in the Zacks Consensus Estimates for 2025 and 2026, respectively [9] Financial Flexibility and Shareholder Value - Voya Financial's capital levels remain strong, with an expectation of improved excess capital generation and high free cash flow conversion [14] - The company increased its quarterly dividend by 12.5% starting in Q3 2024 and generated approximately $200 million of excess capital in the quarter [15] - Voya plans to resume share repurchases targeting $200 million in the second half of 2025 [15] Conclusion - Voya Financial is well-positioned for growth due to improved investment income, higher average equity markets, positive net flows, and strategic partnerships, making it an attractive option for potential investors [16][17]